Arusha. CRDB Bank is contemplating to scrap monthly charges to service the accounts in order to woo more clients and focus on more profitable charges for account holders.
This was announced here last Thursday by the managing director Charles Kimei during a seminar organized by the bank for entrepreneurs and members of the business community.
He said with the fast expansion of the bank -now the largest in terms of asset size and branch network- the financial institution was seeing no use to continue charging the account holders for the services rendered.
“Such costs can be absorbed in other charges to depositors. Our volume of business is quite large. Charging clients for simply having an account should no longer be our priority”, he pointed out.
He could not reveal when the measure would come into effect during his address to a well attended meeting at Mt. Meru Hotel, only noting that this could be the new order “after some years”.
Dr Kimei informed entrepreneurs and account holders from Arusha and its environs that CRDB Bank was experiencing rising operational costs “due to the structural nature of our banking system”.
He said flexibility was needed in managing loans and cash flow.
However, he said the 21 year old bank remains stable due to diversified base of its clients, with small and medium enteprises (SMEs) accounting for a significant per cent of its deposits and the quantity of its assets. The bank’s current assets base stands at Sh5.4 trillion. It has deposits worth Sh4.1 trillion. It has issued loan to the tune of Sh3.5 trillion.
Dodoma. Several famous structures, including the Mashujaa grounds and the main bus terminal, are earmarked for demolition here to pave the way for construction of the standard gauge railway line.
The Rahco Public Relations Officer, Ms Catherine Moshi told The Citizen yesterday that plans were underway to demolish the Dodoma’s famous Mashujaa grounds, which, along with other structures, lie within the reserved railway area.
“Indeed, the grounds are located along the reserved area, but we thought it was not patriotic to demolish it, especially due to the presence of the Heroes’ Tower. We have communicated with the municipal authority and gave them enough grace period to relocate it,” she said. She said, considering the historical potential of the grounds to the country, they (Rahco) have decided to give time for the Dodoma Municipality and the regional government to find an alternative place to relocate the grounds.
Similarly, Rahco has also given a grace period to the Municipal Council to find the best place to relocate the main bus stand to.
Already, a number of structures have been demolished during the exercise that started on Saturday involving at least 487 make-shift business structures and 128 houses that were built along the Jamatini Commuter Bus Stand, Sarafina Market and Dodoma Bus Terminal.
Dar es Salaam. The Tanzania Fertiliser Regulatory Authority (TFRA) has cautioned government to ensure it sets a proper arrangement for distributors to transport the commodity that will be imported through the newly introduced Bulk Procurement System (BPS) in to avoid price speculations.
TFRA econometrician Ben Nkonya told The Citizen that reduced farm gate prices will be achieved if retailers’ networks and small holder farmers groups are strengthened through the Local Government Authority coordination.
“The translation of bulk procurement system into reduced farm gate prices will only apply when the distribution to wholesale and retail markets is done in bulk,” he stressed.
He said the cost of transporting a 50-kilo fertiliser bag is Sh 40,000 from Dar es Salaam to Rukwa but only Sh130,000 per tonne using a 10-tonne truck.
In view of this, he said that the utilisation of economies of size makes transport cost to be 16 percent of the transportation in small lots.
“Economies of scale have already started applying in Makambako whereby retailers have teamed up to transport 45 tonnes at the rate of Sh2,250 per 50-kilo bag from the Dar es Salaam distributors’ warehouse in bulk compared with the TFRA transport cost of Sh3,559 per 50-kilo bag, which makes it a volume discount of Sh1,309 or 37 per cent,” he said.
“This has significantly reduced the transport cost as compared to each retailer transporting on his or her own. If supported by the government, it may result in very significant farm gate price reduction.”
Dar es Salaam. The government expects to earn at least $180 million (about Sh400 billion) per year through various tax and non-tax revenue from a Chinese firm finalising plans to set up a cement and electricity generation plant in Tanga, which will be implemented in two phases, The Citizen has learnt.
In phase one, the government will start earning the revenue immediately after the construction of Sinoma and Hengya Cement (T) Ltd that will be completed in 10 years, according to data gathered from the Tanzania Investment Centre (TIC).
“It is estimated that after the completion of phases I & II, the government will earn $180 million per year in various tax and non-tax revenue from the project,” TIC public relations manager Pendo Gondwe told The Citizen in an email interview.
Sinoma and Hengya Cement (T) Ltd is negotiating with relevant government bodies to be granted some incentives, Industry, Trade and Investment minister Charles Mwijage told The Citizen last week.
The company plans to invest $2.35 billion (about Sh5.2 trillion) in 10 years. The money will be injected into the making of cement and production of electricity from coal.
According to the TIC, $1 billion (about Sh2.25 trillion) will be invested in cement production in five years of phase one of the project.
The factory will manufacture seven million tonnes of cement and its amount will be about two times more than the Mtwara-based Dangote Cement plant.
Africa’s richest man Aliko Dangote, invested $500 million in his Mtwara factory, which has an annual capacity of 3 million tonnes.
Currently, Tanzania’s cement production capacity stands at 10.8 million tonnes against the demand of 4.8 million tonnes, according to Mr Mwijage.
The coming of Sinoma and Hengya Cement (T) Ltd will, therefore, bring the capacity to 17.8 million tonnes.
Dar es Salaam. The shilling has maintained its strength against the dollar, sending good news to importers. Reports by financial markets indicate that the local currency opened the week strongly.
However, this is a hard moment for exporters as they are fetching less amount than what they were earning a month ago. The Citizen reviews from different local and international forex markets have shown that the shilling gained ground against the dollar, reaching the lowest level in three months last week.
The international foreign exchange market shows that the dollar was exchanged at a mean rate of Sh2,252 in early November, higher than Sh2,237 recorded on Saturday. The Bank of Tanzania quoted dollar buying and selling rates at Sh2221/2244 yesterday respectively, lower than Sh2225/2247 recorded a month ago.
Bureaux de change quoted the dollar at average rates of Sh2,243 and Sh2,255 for buying and selling respectively yesterday, which were lower than 2,245/2,260 recorded in late October this year.
The KCB Bank Tanzania Treasury newsflash released yesterday showed that the shilling opened the new month of December from where it left off last November.
It showed that the commercial banks now quoting the shilling at Sh2240/2247 per dollar, but tipping that the local currency will experience further strengthening towards the year end. The interbank foreign exchange summaries shows that the overnight average rates was Sh2,244 during the end of last month, lower than Sh2248 recorded during the end of October this year.
Dar es Salaam. A passenger transport company, Uber-Tanzania, has managed to boost the income for over 1,000 taxi drivers in the country by providing them with permanent and part-time jobs.
Speaking in Dar es Salaam yesterday, the company’s head of communications for the East African region, Ms Janet Kemboi, told journalists that more than 30,000 Dar es Salaam residents and visitors to the city are currently able to access the taxi transport services that are available through the use of state-of-the-art mobile phone application.
“This business is growing very fast in Dar es Salaam, and we have received a very positive response so far. We project that, in a few years to come, Dar will be like Nairobi in the Uber business. There are already more than 5,000 registered Uber drivers in that Kenyan capital,” she confidently stated.
Noting that Uber taxi “users can access the service anywhere in the world,” Ms Kemboi said that this was how and why “over 60 foreigners have managed to use it while they were in Dar es Salaam.”
Uber-Tanzania is also thinking of establishing its business in other Tanzanian metropolises, including Arusha, after the Dar es Salaam business stabilizes and demonstrates beyond reasonable doubt that it is worth it.
Uber is already doing reasonable well in Kenya and Uganda, where the business is growing rapidly. In fact, “the company is planning to introduce a new food delivery application in Kenya next year,” she said.
The company also looks forward to joining financial institutions, including banks, in efforts to get then to finance through loans the purchasing of cars by prospective ‘Uber’ operators.
“In Kenya we have been quite successful in this, as some 300 Uber drivers have been able to get loans with which they bought cars for Uber services.” The Uber country manager in Tanzania, Alfred Msemo, told The Citizen that Uber transport is safe and secure as users only need a smartphone to ‘hail’ an Uber taxi. In any case, plans are already under way to install the application for persons who do not own an analogue phone.
Mr Msemo also noted that a recent market survey which was conducted by the company recently established that 91 per cent of the drivers who were polled unequivocally stated that the Uber system is helping them to earn more income.
The Uber application is already operating in 80 countries of the world – 11 of them in Africa.
The government has been advised to take immediate steps to ease Tanzania’s monetary policy as a way of improving liquidity in the economy, the Bank of Africa (BOA) Tanzania has said.
The chairperson of BOA Tanzania board of directors, Ms Mwanaidi Maajar, said the financial sector was facing a number of challenges which should be tackled immediately. The She said such challenges had undermined the ability of banks to lend, heightening potential risks on economic growth targets.
She was speaking at the weekend during the commemorate the bank’s tenth anniversary in Tanzania. “The banking industry’s lending trend has been slowly growing on the back of increasing non-performing loans,” she said, calling upon the government to continue pursuing an inclusive growth by easing the monetary policy as a way of improving liquidity in the economy. This comes at a time when the Bank of Tanzania has however reduced the minimum reserve ratio to 8.0 per cent from 10 per cent during the past few months in order to provide liquidity to banks which will in turn expand their lending base and contribute to the growth of credit to the private sector.
Ms Maajar acknowledges the move but hopes that a further untying of the policy would do much good to the economy.
Monetary policy is the process by which the monetary authority of a country, like the central bank or currency board, controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
Further goals of a monetary policy are usually to contribute to economic growth and stability, to lower unemployment, and to maintain predictable exchange rates with other currencies. Monetary economics provides insight into how to craft an optimal monetary policy. Since the 1970s, monetary policy has generally been formed separately from fiscal policy.
, which refers to taxation, government spending, and associated borrowing.[
Abidjan. The African Development Bank Group (AfDB) has launched the Presidential Youth Advisory Group (PYAG) to provide insights and innovative solutions for job creation for Africa’s youth.
This is in line with the bank’s Jobs for Youth in Africa Strategy, according to AfDB’s Group President Akinwumi Adesina.
The initiative aims at creating 25 million jobs and impacting 50 million youth over the next ten years by equipping them with the right skills to get decent and meaningful jobs. It is currently the largest effort going on for youth employment in Africa.
The advisory group, inaugurated on the sidelines of the 6th EU-Africa Business Forum in Abidjan on Monday, will work with the Bank to create jobs for Africa’s youth.
“This is a huge opportunity for Africa. If we fix the youth unemployment challenge, Africa will gain 10-20 per cent annual growth. That means Africa’s GDP will grow by $500 million per year for the next thirty years. Africa’s per capita income will rise by 55 per cent every year to the year 2050,” he said.
Dr Adesina, who identified Africa’s greatest asset as its youth, observed that out of the 13 million youths that enter the labour market each year, only 3 million (33 per cent of African youth) are in wage employment, while the rest are underemployed or in vulnerable employment.
The annual gap of more than 8 million jobs is going to worsen, with the number of youth expected to double to more than 800 million in the next decades.
“Africa has an unemployment crisis among its youth,” he stressed, noting that unless employment opportunities are created for them, Africa’s rapidly growing population of youths can give rise to serious social, economic, political and security challenges.
Indian High Commissioner to Tanzania Sandeep Arya is calling on Tanzanian companies engaged in agriculture to partner with Asian firms, if the country is to make maximum gains from agriculture.
Mr Arya says there is a high demand for agro-manufactured products in India and neighbouring countries, an opportunity that can be explored by Tanzanian players given the two countries’ healthy relationship.
“Another opportunity is in marketing and Information Technology (IT). So, I encourage local firms to extend their wings to the Middle and Far East countries to explore these opportunities,” he said when speaking at the 13rd Trade Exhibition held at the Mlimani City Hall in Dar es Salaam between from November 24-26, this year.
“So far, there are two Tanzanian companies operating in India…they are doing well in agriculture as well as Information Technology (IT). They are providing potential areas that Tanzanians can explore,” he says, adding: “This way we will be encouraging an improvement in bilateral trade.”
The organisers also expressed optimistism that the exhibition would provide Tanzanian companies with new techniques and skills on how to improve their businesses.
So far, the trade volume between India and Tanzania stands at $2.15 billion, with the former grabbing a larger portion as it has over 200 hundred companies operating in the country. Tanzania, on the other hand, has only three firms in India.
However, the envoy insists that business and trade relations between the two countries have been growing and expanding over the past few years.
Attending the exhibition, the vice chairperson of Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) Dr Kingu Mtemi acknowledged the efforts, saying it provided the right platform for the two parties to learn from each other.
“The exhibition provides us with an opportunity to learn from our visitors who are ahead of us in international business. They can also explore investment opportunities here such as in oil and gas, agriculture, industries and others,” he said.
For their part, exhibitors lauded the business climate in the country, saying it was attractive and promising for foreign investors. We’ll be happy to come and invest here, given the good business and investment climate,” said Mr Pranay Maurarka, business development manager for Modware Company from India.
India and Tanzania enjoy a vibrant business and commercial relationship. India is a leading trading partner of Tanzania, accounting for 15 per cent of Tanzania’s foreign trade. India is also among top five investment sources in Tanzania. Major companies and brands present or operating in Tanzania with an indian connection include Bank of Baroda, Bank of India, Canara Bank, Tata International Limited, Bharti Airtel and National Mineral Development Corporation, Kamal Group of Industries, Escorts, Ashok Leyland, Eicher and Bajaj.
The Dar es Salaam Rapid Transport (Dart) Agency plans to raise the number of buses – plying its roads – by 117 per cent in the coming seven months as it seeks to further improve commuting in the city, a senior executive has said.
Dart chief executive officer Ronald Lwakatare said in a statement on Monday that by June next year there will be a total of 305 buses on the Dart infrastructure from the current 140.
He could not divulge whether the buses will be brought by the existing operators – Uda-Rapid Transit (UDA-RT) or another operator.
Currently, according to Mr Lwakatare, a total of 200,000 commuters use Uda-RT’s buses in the city.
“With the new plan, the number of commuters will rise to between 400,000 and 500,000 per day,” he said in a statement on Monday.
The number of routes, plied by the buses will also increase, with plans that residents of Masaki, Sinza, University of Dar es Salaam and other areas will also be directly reached by the services. Currently, buses under the Dart system ply only on Kivukoni-Gerezani-Moroco and Kimara-Mwisho routes.
The Dart infrastructure was built with a loan from the World Bank.
The operator is thus expected pay a fee for operating in the roads and the government uses part of the fee in repaying the borrowed money.
Since the rapid buses started its operation, several countries from Africa including Ethiopia, Malawi, Uganda, Rwanda and Kenya has sent their representatives for the purpose of learning.
Dart Agency says in its website that it aims at having a modern public transport system at reasonable cost to users using high capacity buses that are environmentally friendly, operating on exclusive lanes and run on schedule. Its mission is to provide quality, accessible and affordable mass transport system for the residents of Dar which will subsequently enable poverty reduction improve standard of living lead to sustainable economic growth, and act as a pioneer of private and public investment partnership in public transport.
Its objectives include to increase the level of mobility of majority of residents enhancing their participation in a wide range of activities.
The government has called on private sector players to invest in aviation industry in expanding and modernising the sector’s infrastructure.
The call was made on Tuesday, September 19, by the Minister for Works, Transport and Communication, Prof Makame Mbarawa.
He was speaking at the opening of the two-day National Civil Aviation Forum which brought together stakeholders to discuss how to develop the sector.
Prof Mbarawa said the government was in need of investors who would invest in modernisation and expansion of airport infrastructures.
Most of the country's airports demand modernisation and expansion to accommodate more aircrafts, according to Prof Mbarawa.
"We can't do much unless we work together with serious investors from the private sector," he warned.
"I don't need investors who are coming to my office and talk too much but rather those who are action-oriented with interests of taking the country's aviation industry to the next level," he added.
Meanwhile, he said Julius Nyerere International Airport (JNIA) terminal three would be open in September next year.
Once the terminal starts operations, the Dar es Salaam-based airport will be attracting 6.4 million passengers per year compared with 2.5 million attracted by JNIA (terminal two).
Dar es Salaam. Vodacom Tanzania PLC has appointed businessman Ali Mufuruki as board chairman with effect from 01 August.
The mobile network operator listed its shares on the Dar es Salaam Stock Exchange on Tuesday after completing the initial public offering (IPO) which was fully subscribed to raise Sh476 billion as planned.
Mr Mufuruki succeeds Mr Vivek Mathur following his recent resignation, the company said in a statement published on Thursday.
Non-executive directors, including the chairman, are appointed in accordance with the company’s articles of association and in line with corporate governance guidelines issued by Capital Markets and Securities Authority (CMSA).
“Mr Mufuruki brings with him a wealth of experience and influence from years of service in and out of the country,” stated Vodacom Tanzania’s chief executive officer Mr Ian Ferrao.
Mr Mufuruki is the founder and CEO of the Infotech Investment Group. “I look forward to facilitating collaborative working relationships with directors, management and other stakeholder groups to deliver on the board’s mandate,” stated Mr Mufuruki.
Vodacom also welcomed three new interim directors from Vodacom Group representing majority shareholders. These include Shameel Joosub (Vodacom Group ceo), Till Streichert (Vodacom Group chief financial officer), and Matimba Mbungela (Vodacom Group Human Resources director).
Directors representing minority shareholders will be appointed during the company’s annual general meeting where the board will be fully re-constituted.